Modi Refuses To Back Down As Trump Pressures India On Oil Ties To Putin

India-West News Desk

NEW DELHI — Prime Minister Narendra Modi has responded defiantly to mounting pressure from President Donald Trump, who has slapped a 25% tariff on Indian exports and warned of further penalties if India doesn’t halt its purchases of Russian oil. At a public rally in Uttar Pradesh on August 2, Modi doubled down on his call for economic self-reliance, urging citizens to buy domestically made products and defend national interests amid global uncertainty.

“The world economy is surrounded by instability,” Modi told the crowd. “Whatever we buy should be judged by a single criterion: it must be made with the sweat of an Indian.” His remarks follow Trump’s latest rebuke of India’s economic policies, including criticism of its role in the BRICS bloc and its continued trade with Moscow.

According to Bloomberg, the Modi government has not issued any directive instructing Indian refiners to stop buying Russian crude. Both public and private refiners continue to make commercial decisions on sourcing, with no official shift in policy. While Bloomberg also reported that refiners were asked to explore alternative supply options, one source characterized this as contingency planning rather than a pivot away from Russia.

Trump, who has made India a focal point in his strategy to isolate Russian President Vladimir Putin, claimed last week that India would soon stop importing Russian oil—a statement Bloomberg suggested may be premature.

The New York Times, in contrast, reported on August 2 that India plans to maintain its purchases of discounted Russian barrels, which now account for nearly a third of the country’s oil imports.

India’s continued energy trade with Russia has drawn scrutiny from both the U.S. and European Union, who accuse Indian refiners of indirectly propping up Moscow’s war in Ukraine. Yet New Delhi has consistently framed the imports as a necessary move to protect its energy security and insulate itself from volatility in global markets.

In a further escalation, Trump’s deputy chief of staff Stephen Miller on August 3 accused India of “cheating” the U.S. immigration system, imposing “massive” tariffs on American goods, and aligning too closely with Russia and China. Despite the criticism, Modi signaled that his government would not back down.

“The interests of our farmers, small industries, and our youth’s employment are our top priority,” Modi said, reaffirming his government’s commitment to the “Make in India” initiative, which he’s now positioning as a bulwark against foreign pressure.

As Bloomberg notes, Trump’s strategy marks a sharp departure from previous U.S. efforts to deepen ties with India to counterbalance China in Asia. But with Trump seeking greater leverage over Putin, the long-standing U.S.-India-Russia triangle is being tested in new and volatile ways.